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<br /> I 13117 <br /> TI F Talk 11 <br /> I <br /> f' What is an Economic Development District? <br /> I Qualifyino: Parcels that do not qualify for any other type of tax increment financing district, and <br /> the authority finds that (i) business is discouraged from moving to another state or municipality; <br /> I (ii) employment is increased in the state; or (iii) the tax base of the state is preserved and <br /> enhanced. Eighty-five percent of the building's square footage in the tax increment financing <br /> district shall be used for manufacturing, warehousing, storage, distribution, research and <br /> I development, telemarketing, or tourism. <br /> The 1997 Legislature created criteria for small city tax increment financing. A population was <br /> I defined and a definition for a small city was provided. Once these criteria are met, tax increment <br /> generated in an economic development district can be used for two types of commercial projects. <br /> These are a qualified border retail facility and small city commercial facilities. <br /> I Tax Increment Financing Expenditures <br /> . qualified public improvements <br /> I . administrative costs <br /> . loans <br /> . subsidies <br /> Ie . grants <br /> . interest rate subsidies <br /> . additional site preparation and public improvement costs if; <br /> I . bedrock soil conditions are present in 80% of the acreage; <br /> . the estimated costs of site preparation exceeds the fair market <br /> value of the land before completion of the preparation <br /> I Duration: nine years from the date of receipt of the first tax increment or 11 years from approval <br /> of the tax increment financing plan, whichever is less <br /> I Pooling: 20%, administrative costs must come under the pooling cap <br /> I LGA/HACA Election: 10% <br /> Fiscal Disoarities Contribution: must be made from the tax increment financing district <br /> I IndexinG of Orioinal Tax Capacity: Original tax capacity is indexed based on the average <br /> annual increase in market value over the five years before certification. Each year's original tax <br /> I capacity is increased by this percentage. In calculating the increase in market value, the <br /> increase resulting from new construction, installation of utilities and platting during this five year <br /> period are to be subtracted in computing the average increase in market value. <br /> I <br /> .. <br /> I November 19, 1997 <br />